Trump's labor-secretary pick backs unions, but here's why they aren't celebrating just yet

Dow Jones11-26 20:00

MW Trump's labor-secretary pick backs unions, but here's why they aren't celebrating just yet

By Victor Reklaitis

One labor expert says he's skeptical that Trump 2.0 will offer pro-union stances on gig-economy companies and other labor-related issues

While President-elect Donald Trump has tapped pro-union Rep. Lori Chavez-DeRemer to serve as secretary of his Labor Department, supporters of unions are taking a wait-and-see approach toward his selection of the Republican congresswoman from Oregon.

"I welcome her appointment, but I really don't know whether it translates into anything that matters substantively," said William Gould, who chaired the National Labor Relations Board during the Clinton administration and is now an emeritus professor at Stanford Law School.

It's possible that Chavez-DeRemer will be forceful as labor secretary and push Trump to take different stances on union-related issues than he did during his first term, according to Gould.

"We don't know," he told MarketWatch. "I would be skeptical, given the anti-labor record of Trump - on the gig economy, on labor-law reform and on appointments to the National Labor Relations Board."

During his first term Trump made moves that frustrated union organizers, including issuing a regulation for determining whether a worker is an employee or an independent contractor that was widely viewed as favorable to gig-economy companies like Uber $(UBER)$.

From MarketWatch's archives (May 2024): Investors in Uber and other gig companies could be hoping for a Trump win in November. Here's why.

There could be similarities between Chavez-DeRemer and Martin Durkin, the head of a union for plumbers and steamfitters who briefly served as labor secretary during the Eisenhower administration, according to Gould, whose books include "For Labor to Build Upon," which looks at unions' impact on the U.S. The Eisenhower cabinet became known as "nine millionaires and a plumber," and ultimately Durkin found that he couldn't implement his views about reforming labor law.

Chavez-DeRemer will end up having served in the U.S. House of Representatives for one term, as she was unsuccessful earlier this month in her re-election bid. While in the House, she was one of just three Republicans who co-sponsored the PRO Act, a bill that aims to aid unionizing efforts. The measure passed the House in 2021 but didn't find sufficient traction in the Senate.

One libertarian think tank, the Competitive Enterprise Institute, urged Trump not to pick Chavez-DeRemer. The organization said in a blog post a day before her selection that some in the labor movement appear to be pulling for her based on the fact that she backed the PRO Act, which the institute described as a wish list for union leaders.

On the other hand, officials from some major unions applauded his pick while also noting their wait-and-see attitudes. AFL-CIO President Liz Shuler said in a statement that Chavez-DeRemer has "built a pro-labor record in Congress," but "it remains to be seen what she will be permitted to do as secretary of labor."

National Education Association President Becky Pringle said Chavez-DeRemer's record "stands in stark contrast to Donald Trump's anti-worker, anti-union record." The head of the union for educators also said: "Educators and working families across the nation will be watching Lori Chavez-DeRemer as she moves through the confirmation process and hope to hear a pledge from her to continue to stand up for workers and students, as her record suggests."

Teamsters President Sean O'Brien, who made waves by speaking at the GOP convention in July, lobbied for Trump to pick Chavez-DeRemer. The Teamsters didn't end up endorsing Trump or 2024 Democratic presidential nominee Kamala Harris - a move that was viewed as a win for Trump and a loss for Harris. O'Brien thanked Trump in a social-media post late Friday for "putting American workers first by nominating Rep. Lori Chavez-DeRemer for U.S. Labor Secretary."

"Trump was very pleased with the fact that Sean O'Brien made the speech that he did at the Republican National Convention," said Gould, the former NLRB chair. It may be that Trump's labor pick serves "as a gesture of gratitude to the Teamsters," he added.

The president-elect scored support from 45% of households with a union member in this month's election while Harris got 53%, according to exit polls. That's up from 40% support for Trump in 2020, when President Joe Biden was at 57%.

Read more: As Teamsters praise Trump, here's what's going on in the fight over blue-collar voters

Plus: How Trump won middle-class voters - and what his return means for their finances

-Victor Reklaitis

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

 

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November 26, 2024 07:00 ET (12:00 GMT)

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